by John Rubino
If you’re managing money and need positive results in the year ahead, you’re in a tough spot. Stocks are at levels that in the past have preceded cycle-ending crashes while high-grade bonds yield virtually nothing but could easily produce big capital losses if interest rates rise even a little.
What do you do? Retire, if you care about your health. But if you choose to stay in the business, you’ll have to move waaayyy out on the risk spectrum. In fixed income, that means not just junk, but extreme junk. From this week’s Wall Street Journal: